Anonymous ID: ec2638 May 29, 2019, 11:41 p.m. No.6625644   🗄️.is 🔗kun   >>5663 >>5907

>>6625572

So negative.

Haven't you heard of Modern Monetary Theory, anon?

Hardly need that racist math to figure it out.

They just print more money, no problem, since the government has a monopoly on it.

 

https://www.washingtonpost.com/business/modern-monetary-theory-is-an-unconventional-take-on-economic-strategy/2012/02/15/gIQAR8uPMR_story.html

 

Modern Monetary Theory is an unconventional take on economic strategy

 

This claim, that money is a “creature of the state,” is central to the theory. In a “fiat money” system like the one in place in the United States, all money is ultimately created by the government, which prints it and puts it into circulation. Consequently, the thinking goes, the government can never run out of money. It can always make more.

 

This doesn’t mean that taxes are unnecessary. Taxes, in fact, are key to making the whole system work. The need to pay taxes compels people to use the currency printed by the government. Taxes are also sometimes necessary to prevent the economy from overheating. If consumer demand outpaces the supply of available goods, prices will jump, resulting in inflation (where prices rise even as buying power falls). In this case, taxes can tamp down spending and keep prices low.

 

But if the theory is correct, there is no reason the amount of money the government takes in needs to match up with the amount it spends. Indeed, its followers call for massive tax cuts and deficit spending during recessions.